NOTE: If your church board has decided to obtain and
use a debit card, hopefully you will follow our very strong recommendation to open a
separate checking account, not connected to the main checking by
automatic transfers. This debit account is to be funded by manual online
transfers from the main checking account as needed.
Go to Maintenance / Edit Accounts, then click on “Add New Account”
and set it up like this:
- Type: Bank Account
- ID: Pick a number, close to your other bank accounts,
that is not already in use.
- Name: Debit – then the name of your bank
- Bank Name: Debit. The rest of the “Bank Information”
can be left blank, since you won’t be writing or printing checks on this
account.
- Statement Frequency: The default is “Monthly.” Leave it
that way.
Click the green “OK √” in the top right corner to save and leave.
- Some banks will require a minimum balance in order to avoid fees.
Find out your bank’s practices.
- Ask for end of month statements. Ask for printed and mailed
statements, even if there is a small charge.
- Your debit account should not be set up to auto draft from checking
if the balance gets too low. Having a separate debit account is so that
fraudulent use of your debit card cannot drain your main checking
account. If the two accounts are connected with auto draft, it defeats
the purpose of the separate account.
- You do not need to purchase checks – you will not be writing checks
from this account. Ideally, you won’t even need deposit slips, since
transferring online is the best.
- If possible, set up online banking for yourself as treasurer, so you
can quickly and safely transfer funds online from checking to debit when
needed.
NOTE: The board should discuss and vote who will use
the card(s) and under what circumstances. Review these requirements
annually with the board, or with new card holders as they receive their
card.
- The debit card should never be used for personal purchases.
- The debit card should never be used to withdraw cash.
- Have the cardholders sign a “Debit/Credit Card User Agreement” when they receive
their card.
- Require that a “Debit Card Activity Report” be turned in monthly by
cardholders.
- Original receipts for all purchases should be stapled in date order
to the “Activity Report,” and turned in to the treasurer no later than
the 7th of the following month, without the card holder having to be
reminded or asked for missing receipts. The card-holder’s convenience
should not exponentially increase the treasurer’s workload.
- Anyone who does not follow the guidelines on the “Debit Card Activity Report” should forfeit the use
of the church debit card.
NOTE: To avoid fraud and misuse, set up clear
guidelines and stick to them. Card holders will need to know that
exceptions will be rare. Be kind but firm. If they are asked by the
board to sign the “Debit/Credit Card User Agreement” upon receiving
their card, they will have less opportunity to claim ignorance or
privilege.
Click
here for more topics related to Debit Cards
Click
here for more topics related to Edit Accounts
The original version of this page was provided to Jewel by the
Georgia-Cumberland Conference Audit Team. Created by Linda McCabe.